- Investment business HGL (HNG) has entered a trading halt while it plans a capital raise
- HGL hasn’t provided any indication as to how much it’s raising or how it will spend the money but, it has released its results for the 12 months ending September 30, 2021
- Importantly, the company returned to profitability with a NPAT of $15.6 million compared to a $13 million net loss and ended the period with $7.6 million in cash
- HGL considers itself to be well-positioned to deliver strong results in FY22 and execute suitable investment opportunities
- HGL expects to come out of the trading halt on November 26 and shares last traded at 40 cents on November 23
HGL (HNG) has entered a trading halt pending the release of an announcement regarding a capital raise.
The company hasn’t provided any details on how much it expects to raise or how it will spend the money once received.
HGL did however today release its financial year results for the 12 months ending September 30, 2021.
During this period, HGL invested in diversified assets, included listed and unlisted equities, and private equity investments. It also claimed to have ‘refined’ its investment approach through capital raising, recruiting a new investment team and actively managing its portfolio.
The company’s investees include school and corporate wear supplier Mountcastle, Pegasus Healthcare, ASX-listed Cellmid (CDY), T-Shirt Ventures, H&G Investment Management, FOS Capital (FOS), and more.
The product marketing and supply chain business reported around $15.6 million in net profit after tax, compared to a net loss of about $13 million in the prior corresponding period.
While no dividends were paid during the financial year, directors have since declared a fully franked dividend of one cent per share to be paid on December 3, 2021.
At the end of the period, HGL had $7.6 million in cash. The company considers itself to be well-positioned to deliver strong results in FY22 and execute suitable investment opportunities.
HGL expects to come out of the trading halt on Friday, November 26.
Company shares last traded at 40 cents on November 23.